Abstract
The acquisition of fixed assets during the business expansion or retention is a complex and ambiguous task. Maritime transportation companies often consider the option of acquiring ships on the aftermarket. This option is supported by the long service life of marine vessels may being in successful operation for 40 years or more from the time of vessel launching. Marine vessel is also characterized by demolition cost, which is the cost to the company of destroying a large industrial facility like the marine vessel. This effect forms the features that must be taken into account when business planning a project to purchase a marine vessel. The article analyzes in detail the effect of demolition cost on decision making based on interest rate.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.